We feel now is a pretty good time to analyse indie Semiconductor, Inc.'s (NASDAQ:INDI) business as it appears the company may be on the cusp of a considerable accomplishment. indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications. On 31 December 2024, the US$698m market-cap company posted a loss of US$133m for its most recent financial year. Many investors are wondering about the rate at which indie Semiconductor will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for indie Semiconductor

According to the 8 industry analysts covering indie Semiconductor, the consensus is that breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of US$72m in 2027. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 79%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for indie Semiconductor given that this is a high-level summary, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with indie Semiconductor is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in indie Semiconductor's case is 86%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of indie Semiconductor which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at indie Semiconductor, take a look at indie Semiconductor's company page on Simply Wall St. We've also put together a list of key aspects you should further examine:

1. Historical Track Record: What has indie Semiconductor's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on indie Semiconductor's board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.